Correlation Between Crestwood Equity and Dorian LPG
Can any of the company-specific risk be diversified away by investing in both Crestwood Equity and Dorian LPG at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Crestwood Equity and Dorian LPG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crestwood Equity Partners and Dorian LPG, you can compare the effects of market volatilities on Crestwood Equity and Dorian LPG and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Crestwood Equity with a short position of Dorian LPG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crestwood Equity and Dorian LPG.
Diversification Opportunities for Crestwood Equity and Dorian LPG
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Crestwood and Dorian is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Crestwood Equity Partners and Dorian LPG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dorian LPG and Crestwood Equity is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Crestwood Equity Partners are associated (or correlated) with Dorian LPG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dorian LPG has no effect on the direction of Crestwood Equity i.e., Crestwood Equity and Dorian LPG go up and down completely randomly.
Pair Corralation between Crestwood Equity and Dorian LPG
Given the investment horizon of 90 days Crestwood Equity Partners is expected to generate 0.57 times more return on investment than Dorian LPG. However, Crestwood Equity Partners is 1.77 times less risky than Dorian LPG. It trades about 0.22 of its potential returns per unit of risk. Dorian LPG is currently generating about 0.04 per unit of risk. If you would invest 2,662 in Crestwood Equity Partners on August 31, 2024 and sell it today you would earn a total of 280.00 from holding Crestwood Equity Partners or generate 10.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 8.56% |
| Values | Daily Returns |
Crestwood Equity Partners vs. Dorian LPG
Performance |
| Timeline |
| Crestwood Equity Partners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Dorian LPG |
Crestwood Equity and Dorian LPG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crestwood Equity and Dorian LPG
The main advantage of trading using opposite Crestwood Equity and Dorian LPG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crestwood Equity position performs unexpectedly, Dorian LPG can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dorian LPG will offset losses from the drop in Dorian LPG's long position.| Crestwood Equity vs. Western Midstream Partners | Crestwood Equity vs. DT Midstream | Crestwood Equity vs. MPLX LP | Crestwood Equity vs. Enterprise Products Partners |
| Dorian LPG vs. DHT Holdings | Dorian LPG vs. Scorpio Tankers | Dorian LPG vs. Teekay Tankers | Dorian LPG vs. Torm PLC Class |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |